NEW YORK (TheStreet) -- Goldman Sachs added Martin Marietta Materials (MLM) to its Conviction Buy List and set a $159 price target. The firm believes the company is leveraged to higher domestic non-residential and public construction.
The stock was down 0.38% to $127.29 when the market opened on Thursday.
Separately, TheStreet Ratings team rates MARTIN MARIETTA MATERIALS as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MARTIN MARIETTA MATERIALS (MLM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MLM's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 11.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.67% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MLM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MARTIN MARIETTA MATERIALS has improved earnings per share by 21.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MARTIN MARIETTA MATERIALS increased its bottom line by earning $2.61 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($3.88 versus $2.61).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Construction Materials industry average, but is less than that of the S&P 500. The net income increased by 22.3% when compared to the same quarter one year prior, going from -$27.84 million to -$21.62 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Construction Materials industry and the overall market on the basis of return on equity, MARTIN MARIETTA MATERIALS has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full analysis from the report here: MLM Ratings Report